If the Employee Retention Credit is not taxable in Minnesota, are the wages still deductible?
Yes. If taxpayers claim the federal credit and received less wages as a business expense deduction, they may include federal disallowed wages on their nonconformity schedule. (Added 1/14/22)
Can taxpayers take Covid/Sick pay (or ARPA pay) that the IRS reimbursed as a subtraction from gross income for Minnesota purposes?
No. If claimed the Employer Payroll Credit for Required Paid Family Leave or Medical Leave, they must include the amount of the credit which was included in their federal gross income as a negative amount on their nonconformity schedule. (Added 1/14/22)
Does Minnesota conform to the federal 100% deduction for meals purchased from restaurants for immediate consumption?
No. Minnesota remains out of conformity for amounts paid or incurred after December 31, 2020, and before January 1, 2023. (Added 1/14/22)
If a business files the Federal Partnership Audit election, do they also have to file Schedule M3BBA?
Yes. Partnerships making this election must file Schedule M3BBA with the Form M3X, Amended Partnership Return. For details, see Schedule M3BBA. (Added 1/14/22)
Does the Paycheck Protection Program (PPP) addback for the property tax refund include the proportion of PPP loans forgiven to partnerships or S corporations?
Yes. The share of excluded PPP loan forgiveness should be included in household income. (Added 1/14/22)
Did Minnesota conform to the Shuttered Venue Operators Grants (SVOG) program?
No. The Minnesota tax law changes enacted on July 1, 2021, did not conform to the Shuttered Venue Operators Grants (SVOG) program changes within ARPA (section 5005). Taxpayers must still report a nonconformity adjustment relating to this provision on their nonconformity schedule. (Added 11/12/21)
Did Minnesota conform to the Employee Retention Credit (ERC)?
No. The Minnesota tax laws enacted on July 1, 2021, did not conform to the ERC. Taxpayers must still report a nonconformity adjustment relating to this provision on their nonconformity schedule. (Added 12/1/2021)
Do I report Paycheck Protection Program loan forgiveness, and related business expenses that were not deductible for federal purposes, on my Minnesota return?
No. Minnesota tax law allows the same treatment of loan forgiveness amounts and related business expenses as federal tax law. (Added 12/1/2021)
Will Minnesota conform to federal tax law changes enacted after December 31, 2018?
A state tax bill was enacted on July 1, 2021, that conforms to certain federal law changes enacted after December 31, 2018. See the 2021 Legislative Bulletins for more information. (Added 12/1/2021)
Did Minnesota conform to the Qualified Improvement Property (QIP) technical correction?
No. The Minnesota tax laws enacted on July 1, 2021, did not include conformity to the QIP technical correction. Taxpayers must still report a nonconformity adjustment relating to this provision on their nonconformity schedule. (Added 12/1/2021)
If I amend my federal income tax return for a net operating loss carryback, do I also need to amend my Minnesota return?
Yes, file Form M1X, Amended Minnesota Income Tax, within 180 days after filing the amended federal return. Include a copy of the amended federal return. For details, see the Form M1X instructions. (Added 12/1/2021)
Are the IRS economic impact payments included in household income for the Minnesota Property Tax Refund?
No. These payments are considered a federal tax credit. (Added 12/1/2021)
Are the Economic Injury Disaster Loans (EIDL) taxable in Minnesota for 2021?
Yes. Filers must include EIDL loan amounts as a nonconformity adjustment on their 2021 return. (These loans were not taxable for taxable years beginning after December 31, 2019, and before January 1, 2021.) (Added 12/2/2021)
